In a significant development for the aviation industry, EasyJet has reached a £5.7 billion acquisition agreement with Apollo Global Management, a US-based private equity firm. This decision comes after rival bidder Castlelake exited the competition, leaving Apollo as the sole contender. Under the terms of the agreement, Apollo is set to pay £7.15 per share for EasyJet, with the transaction anticipated to finalize by the end of March 2027, pending the necessary regulatory approvals.
Initially, EasyJet had leaned towards a potential sale to Castlelake; however, Apollo’s enhanced offer sparked a competitive bidding environment. Ultimately, Castlelake decided against submitting a final offer, paving the way for Apollo to secure the deal. EasyJet’s founder, Stelios Haji-Ioannou, along with his family, will maintain their current shareholding under the new ownership structure. Apollo’s ownership stake will be limited to 49.9%, a measure intended to ensure compliance with European Union ownership regulations through a distinct shareholding framework.
Apollo has pledged to uphold EasyJet’s existing operational setup by retaining the airline’s headquarters in both the UK and the European Union. The private equity firm has expressed confidence in EasyJet’s growth strategy and sees substantial long-term opportunities within its European and UK aviation networks. This strategic acquisition underscores Apollo’s commitment to supporting and expanding EasyJet’s market presence in the region.
EasyJet’s board of directors has endorsed Apollo’s offer, citing its provision of immediate and attractive value for shareholders. The board also acknowledged the proposal as a recognition of the airline’s robust performance and promising future prospects. Investors responded positively to the confirmed acquisition, which led to a recovery in EasyJet’s share price following an initial decline caused by Castlelake’s withdrawal from the bidding process.